Sedgman confident of profit result

Mining services company
Sedgman
remains confident it can deliver profit in the upper end of expectations despite delays at key projects.

Sedgman is forecasting earnings in financial year 2010 of 15¢ a share, excluding amortisation and intangible assets and post the company’s recent $30 million capital raising.

This outcome has been predicated on Sedgman securing two high probability coal projects to replenish its engineering services order book. A $75 million design and supply contract for Xstrata has been secured, and work is under way. Design work on Riversdale Mining’s Benga project has also started, and Sedgman is confident contracts for design and supply will be signed soon.

Both projects, though, are running behind the company’s original schedule, but chief executive Mark Read said at the company’s annual meeting on Wednesday he was confident most of the delay can be caught up. It will mean, though, that full-year earnings will be heavily weighted toward the performance in the June half.

Adjusted earning per share in 2008-09 was 16.5¢ a share. Sedgman shares closed down 1¢ at $1.61 on Wednesday.